Coventry City have lost out on nearly half a million pounds after Wasps RFC went into administration.
The rugby club's debts spiralled completely out of control, totalling up to £95 million, according to a report by administrators FRP. The combined debts of their parent company Wasps Holdings and the three businesses running the Coventry Building Society Arena have come at a substantial cost to the taxpayer as well.
Coventry City are one of many local businesses that were owed money by Wasps, with the Sky Blues owed about £465,000. The BBC report that the debt relates to food and drink revenue and not the cost of replacing the pitch in August.
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Wasps and the operating companies running the Coventry Building Society Arena owed over £21m to various public bodies. The largest chunk of that comes from a £14.1m unsecured Covid Sport Survival Package (SSP) loan from the Department for Digital, Culture, Media and Sport (DCMS).
HMRC were owed £7m, while Coventry City Council was owed more than £270,000. Warwickshire County Council, Stratford District Council, West Midlands Police and West Midlands Ambulance Service were all owed much smaller amounts.
The downfall of Wasps allowed Mike Ashley's Frasers Group to buy the CBS Arena for £15.8m. The stadium's new owners served the football club with an eviction notice last week.
Frasers Group have presented the club with a new licence agreement proposal, but the club say it is on less favourable terms and would only last until May 2023.
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